Minneapolis closes on sale of five parking ramps
Sales spur new development at key Minneapolis locations
Oct. 30, 2007 (MINNEAPOLIS) The City of Minneapolis has closed on the sale of five municipal parking ramps to Alatus Management, LLC with proceeds to the City totaling about $65 million. The sales are the first to complete the process following a City Council action in July 2007 that authorized the sale of eight City-owned ramps. The revenue from the sales will allow Minneapolis to stabilize its Parking Fund, and spur new development at several sites.
The five ramps included in this sale are the Centre Village, Downtown East, Seven Corners, Loring, and Gateway ramps.
As part of this sale, Alatus Management has committed to constructing new developments at or near at least two of the ramps. The Downtown East site is slated for a development project that may include housing, retail, office space, or and/or hotel. It has also committed to developing housing and possibly street-level retail adjacent to the Seven Corners Ramp. Each of these developments will be required to obtain LEED certification from the U.S. Green Building Council, which means the buildings will be constructed to a high standard for environmental sustainability. Alatus Management has also committed to study whether it is feasible to build liner housing around the Loring Ramp. The new developments will not only create new housing and jobs within Minneapolis, but they will also add to the city’s tax base.
"This is a win-win decision for the people of Minneapolis," said Mayor R.T. Rybak. "It improves the financial outlook of our Parking Fund, and just as importantly, it opens up new opportunities for Minneapolis to grow and develop. The additional housing and retail at some of these ramp sites will be welcome additions to the neighborhoods."
"Selling these ramps is another example of fiscally smart decision-making that also is great news for neighborhoods where the ramps are located," said City Council Member Lisa Goodman, who represents the Downtown area and was a leader in planning and executing the sales process. "We could have simply sold off these ramps and paid down the debt in the parking fund, but we put in the extra work to make sure that the sales have other benefits to Minneapolis, including immediate façade and ramp improvements, and future new development using green building practices."
The sales will allow Minneapolis to pay down debt on its parking system and improve the financial picture of the City’s Parking Fund, which is used to fund operation of the municipal ramps, parking lots, parking meters, and impound lot. With the sale of these five ramps, Minneapolis’ Municipal Parking System now includes 18 parking ramps and six parking lots, for a total of more than 25,000 parking spaces. The five ramps included in this sale have a combined total of 4,543 spaces.
Three ramp sales are still pending, including sale of the Federal Courthouse Ramp (leasehold interest only) to Alatus Management, LLC; the St. Anthony Ramp to St. Anthony Ramp, LLC; and the Riverfront Ramp to the Guthrie Theater Foundation. The St. Anthony Ramp sale will also include a development component.
Published Oct 30, 2007